A news release from Principal said its e-Distribution Services reduces the labor-intensive process of manually collecting and processing paper forms – and improves accuracy – when it is time for participants to request distributions from the ESOP.
Principal said its product is being offered to clients with an ESOP and KSOP (a combination ESOP and 401(k) plan). Because the service is electronic, there are no printing and mailing costs and no time spent preparing mailings, or collecting and processing forms. The electronic efficiency also removes the chances for manual error or lost forms, the news release said.
Some of the additional benefits of Principal e-Distribution Services include, according to the news release:
- distribution eligibility determination identifies participants eligible for a distribution according to plan provisions.
- distribution notices inform participants of their eligibility and provides instructions for making an online election.
- call center support provides access to a toll-free call center where retirement specialists can answer questions about the distribution process.
- online viewing allows plan sponsors to view cumulative elections via online reports to help with cash management and budgeting.
- immediate access provides eligible participants with immediate and ongoing access during the distribution election window and the opportunity to change their elections at any time during the distribution election window.
- checkwriting cuts distribution checks according to participant elections; and
- tax reporting provides full reporting and withholding for federal and state taxes.
More information is at www.principal.com/esop.